In 2017 retired individuals will benefit from three separate payments that will brighten their finances. In addition to the January raise already granted, retirees will receive promotional payments, and another raise tied to the inflation rate over the last six months and to the contractual raise rate. Below are detailed, clear explanations about this three-part payment for retirees.
Inflation Adjustment and Promotions
For millions of retirees, 2017 has been a significant year. After a flat-rate raise earlier, pensioners saw further increases this year driven by inflation adjustments and bank promotion payments. Those who received the January increase will get an additional raise in July based on the inflation rate recorded over the previous six months. In that six-month period, SSK and Bağ-Kur pensioners experienced a 4.73% rise in their pensions. Civil servant retirees received a 3% increase through collective bargaining.
Because the inflation rate did not exceed the earlier assumed 5% threshold, no supplementary difference arose at that time. The revised pension amounts reflecting these rates were deposited into retirees’ accounts. Shortly after that raise, banks introduced promotional payments. Under the promotion scheme, retirees with pensions under 1,000 TL received 300 TL; those with pensions between 1,000 TL and 2,000 TL received 375 TL; and retirees with pensions above 2,000 TL received 450 TL. These payments were extended to all eligible pensioners, and some payments originally scheduled for May were advanced to April to speed up distribution. Certain banks sought to attract more customers by offering higher promotions, in some cases up to 500 TL.
A New Summer Raise
Retirees can expect a third development this year, likely occurring in July or August. The inflation rate for the last six months, to be determined in July, will translate into a raise for SSK and Bağ-Kur pensioners and an inflation-difference payment for civil servant retirees. The final numbers will be confirmed once June inflation data is released. Even so, the inflation figures published so far give a clear indication of the likely raise percentages. It appears that civil servant retirees will receive an additional 1.34% on top of a 4% contractual raise, while SSK and Bağ-Kur pensioners will see a 4.34% increase.
Civil servant retirees will benefit from the 4% collective agreement raise in July plus any difference arising from inflation, producing a noticeable boost. In August, collective bargaining talks affecting civil servants and civil servant retirees will determine the raise rates those groups will receive over the next two years. Based on current figures, the minimum pension amounts are expected to rise: the lowest pension for an SSK retiree who retired before 2000 will increase to 1,463 TL; an SSK retiree who retired after 2000 will see a minimum pension of 872 TL; and a Bağ-Kur artisan retiree’s pension will rise to 1,271 TL.